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May 31, 2021
FedEx Q4 2021 Earnings Report
FedEx reported record fourth quarter and full-year results, driven by volume growth and disciplined revenue management.
Key Takeaways
FedEx Corp. reported a strong fourth quarter with revenue reaching $22.6 billion and diluted EPS of $6.88. The results were driven by volume growth and disciplined revenue and portfolio management, partially offset by costs to support strong demand and increased expenses.
Fourth quarter operating results increased primarily due to volume growth and disciplined revenue and portfolio management.
FedEx Express fourth quarter operating income more than doubled year over year, driven by exceptional growth in international export and U.S. domestic package services.
FedEx Ground reported record earnings for the quarter and revenue growth of 27%.
FedEx Freight reported record earnings and operating margin of 16.1% for the quarter.
Forward Guidance
For fiscal 2022, FedEx is forecasting earnings per diluted share of $18.90 to $19.90 before the MTM retirement plan accounting adjustments, and capital spending of $7.2 billion.
Positive Outlook
- Earnings per diluted share of $18.90 to $19.90 before the MTM retirement plan accounting adjustments
- Earnings per diluted share of $20.50 to $21.50 before the MTM retirement plan accounting adjustments and excluding estimated TNT Express integration expenses and costs associated with business realignment activities
- ETR of approximately 24% prior to the MTM retirement plan accounting adjustments
- Capital spending of $7.2 billion, with continued investment in the key strategic priorities of e-commerce, operational excellence and efficiency.
- Strategic initiatives include accelerated capacity expansion, fleet and facility modernization, and increased automation.
Challenges Ahead
- FedEx is unable to forecast the fiscal 2022 mark-to-market (MTM) retirement plan accounting adjustments.
- As a result, FedEx is unable to provide a fiscal 2022 earnings per share or effective tax rate (ETR) outlook on a GAAP basis.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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